Which financial statement is implicitly considered dominant as standard setting have shifted toward the asset/liability approach?
A)statement of financial position
B)statement of cash flows
C)statement of shareholders' equity
D)statement of comprehensive income

Question

Quizplus · Accepted Answer

The statement of financial position (also known as the balance sheet) is considered dominant as standard setting has shifted toward the asset/liability approach. This approach focuses on reporting information based on assets and liabilities, rather than revenues and expenses. The statement of financial position provides a snapshot of a company's financial position at a specific point in time, reporting its assets, liabilities, and equity.

Which Financial Statement Is Implicitly Considered Dominant as Standard Setting